Lions Gate Signs New Credit Deal For Up To $200M

NEW YORK (AP) — Film studio Lions Gate Entertainment Corp. said Wednesday that it struck a deal for up to $200 million financing to acquire or make new films.

In a regulatory filing, Lions Gate said a group of lenders led by JPMorgan Chase, along with Union Bank NA and Wells Fargo Bank have agreed to commitments up to $110 million. Commitments may go up to $200 million, the filing said, if other lenders sign on.

The three-and-a-half year revolving credit facility generally provides for an interest rate of LIBOR plus 3.25 percentage points.

Separately, Lions Gate said in a regulatory filing on Tuesday that it modified an existing $340 million credit agreement with JPMorgan Chase and Wachovia that was reached in July 2008.

In afternoon trading, Lions Gate shares were down 2 cents at $6.